Power of Compounding: How soon you can generate Rs 4 crore corpus with monthly investments of Rs 6,500, Rs 8,500, or Rs 10,500
Generating a huge corpus obviously requires consistency and a disciplined investment strategy, but it is not necessarily focused on huge investment amounts, as even a small sum, like Rs 6,000 and above, can turn into a massive retirement corpus that you could have ever imagined. Thus, let's find out how quickly you can generate a Rs 4 crore corpus starting with monthly investments of Rs 6,500 to Rs 10,500.
It is true that you cannot create wealth overnight, but a few years of consistency and disciplined investment can help you generate a sizeable corpus that can support you during your golden years. Who doesn’t want to relax and lead a comfortable life post-retirement? But for that, you have to start working from today itself. As nothing is built overnight, it's not that hard to achieve this target of a Rs 4 crore corpus. Let's find out how fast you can get close to this target and what factors will play a crucial role in building this massive corpus.
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(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
Introduction to power of compounding
The power of compounding is a process through which you can build earnings not only on the principal amount but also on the accrued growth during the investment period and reinvest to generate additional earnings.
Understanding systematic investment plan
SIP is an investment scheme through which you can invest a fixed amount in a mutual fund. You can invest according to your choice either daily, weekly, monthly, or yearly.
Why you should opt for SIP?
Flexible investment option
Automated
convenient
SIP calculation conditions
Target corpus: Rs 4 crore
Monthly investments: Rs 6,500, Rs 8,500, and Rs 10,500
Annualised return: 12 per cent
How soon can you achieve Rs 4 crore corpus with Rs 6,500 monthly SIP?
It will take approximately 36 years to reach this target corpus.
How soon can you achieve Rs 4 crore corpus with Rs 8,500 monthly SIP?
It will take approximately 34 years to reach this target corpus.
How soon can you achieve Rs 4 crore corpus with Rs 10,500 monthly SIP?
It will take approximately 32 years to reach the given target corpus.
What will be your retirement corpus with Rs 6,500 monthly SIP
The investment amount will be Rs 28,08,000, the estimated capital gains will be Rs 3,73,93,833, and the estimated retirement corpus will be Rs 4,02,01,833.
What will be your retirement corpus with Rs 8,500 monthly SIP?
The investment amount will be Rs 34,68,000, the estimated capital gains will be Rs 3,82,58,383, and the estimated retirement corpus will be Rs 4,17,26,383.
What will be your retirement corpus with Rs 10,500 monthly SIP?
The investment amount will be Rs 40,32,000, the estimated capital gains will be Rs 3,68,32,297, and the estimated retirement corpus will be Rs 4,08,64,297.